How to build a credit by taking out a loan?
A bad credit score or no credit can effect your ability to do the things you need to do in life, like buy a car. If you need to build your credit you may actually want to take out a small loan such as a Wise Loan. There are many types of loans that you can apply for, but a short term loan like a Wise Loan can be paid back quickly and impact your credit right away, plus Wise Loan doesn’t require good credit for applicants. Loans build your credit because paying back a loan can show that you are responsible and trustworthy. It also will show future lenders that you can budget and make good choices with your money. Once your loan is paid in full, Wise Loan will report your good payment history to all the credit bureaus.
Interest rates vary depending on the size of the loan and the term. If you have no credit and are looking to build your credit then a short term loan can work well. Just be sure you understand exactly what you are expected to pay back and when. Failure to pay back your loan can result in a lower credit score which is not what you want! The worst thing to do is get yourself into debt just to build your credit.
For more information on whether a Wise Loan is right for you, look at our FAQ…
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.